Decoding Apple's new App Store business terms in the EU

This article was written by Futura Digital partner Alexandra Kurdyumova and associate Nazar Volkov.

We recently wrote about how Apple is facing challenges for its store in the US — the court ordered the iPhone giant to cease its unfair practices stopping developers from using external payment methods.

As a result, Apple is now facing the loss of its 30% commission in the US, its biggest market.

See the full article here.

In late June 2025, Apple introduced new business terms for developers distributing their products in the EU market. It’s directly related to the same issue.

Here, we take a deep dive into the new rules, how they are structured and what it all means for developers, should the changes be approved by the EU.

Background in the EU

The EU's regulators have vast experience in antitrust investigations relating to the US's Big Tech companies. 

The EU commission realised that it would be useful to modify antitrust regulations and prescribe the set of clear rules for Big Tech companies based on this experience, instead of extracting case-by-case rules as the result of protracted court proceedings.

In 2023, the Digital Markets Act (DMA) was introduced. It’s mandatory for all EU countries and establishes strict rules for Big Tech companies (so-called “gatekeepers”) to prevent abuse of market power and ensure fair competition in the digital sector.

Interesting for us now, Article 5(4) of the DMA states the following rules:

“The gatekeeper shall allow business users, free of charge, to communicate and promote offers, including under different conditions, to end users acquired via its core platform service or through other channels, and to conclude contracts with those end users, regardless of whether, for that purpose, they use the core platform services of the gatekeeper.”

These rules prohibit Apple restraining iOS developers from telling EU users about external payment methods and linking to them.

In 2023, the DMA entered into force in full. Apple complied with the requirements, but… it did not leave things like that

Apple transition period 2024 to 2025 - The first version of its new business terms

From one side, Apple allowed developers to use external payment methods (using payment service providers (PSPs), processing payments via link-outs) and informing EU users of promotions, discounts, and other deals available outside their apps.

But from the other side, Apple completely restructured its commission system:

1. Developers in the EU are able to choose between two types of terms (let’s say, old and new).

2. Developers must adopt the new terms to access alternative payment processing or app distribution (the DMA also forced Apple to allow the installation of third-party stores on iOS).

3. Developers operating under either set of business terms can continue to use the App Store’s secure payment processing and share their apps on the App Store in the EU.

4. The general commission is reduced from 30% (15% for small businesses) to 17% (10%). And it holds still even if a developer uses alternative payment methods!

Also, new fees are introduced:

5. A payment processing fee 3% for using Apple’s payment system.

6. The Core Technology Fee (CTF) of €0.50 for apps distributed from any store on iOS to be paid for each first annual install per year over a one million threshold.

“First annual install” refers to the install of an app for the first time in a 12-month period. Reinstalls and updates do not count unless the install is on a new device not linked to the same Apple ID. The CTF applied if the developer used external payment methods.

As Apple stated in January 25th, 2024:

This “fee structure reflects the many ways Apple creates value for developers’ businesses - including distribution and discovery on the App Store, the App Store’s secure payment processing, Apple’s trusted and secure mobile platform, and all the tools and technology to build and share innovative apps with users around the world.”

It seems like Apple thought that it formally complied with requirements to set no charge for using external payment methods, since developers now pay for iOS, and not for the App Store…

EU regulator’s supervision

… But the EU Commission thought otherwise. After an investigation ended in April 2025, the EU Commission found Apple violated its DMA obligations and imposed a €500 million fine and ordered the company to remove the newly introduced commission practice within 60 days.

“Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store," a press release from the European Commission stated on April 23rd, 2025.

"Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. 

"The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.”

Apple’s response - the second business terms structure in June 2025

At the deadline to comply with the EU's ruling, Apple announced changes to its business terms for developers. No, Apple didn’t remove commissions for external payments, but overhauled it with more details and complications.

How the new system works:

1. Two options of business terms are preserved. Now it’s called: 

• Alternative Terms Addendum for Apps in the EU (let’s say, IAP option).

• StoreKit External Purchase Link Entitlement Addendum for EU Apps (let’s say, PSP option).

A developer must choose one of them.

2. If a developer selects a PSP option, it may use external payment systems only. In this case, a developer must pay the following fees:

• Initial acquisition fee - 2% (0% for small businesses). This fee applies when a customer purchases a good/service using an actionable link from the app within a six-month period after their initial unpaid download of the app.

• Store Services Fee - 5% / 10% / 13%. The last two rates are applied for small businesses and standard businesses respectively when they apply Tier 2 (the level with enhanced options for developers. The list of such options may be found here). This fee is paid to Apple on all sales of goods/services that occur within a 12-month period from the date of an install, including app updates and reinstalls. 

• New Core Technology Commission (CTC) - 5%. This is instead of the CTF charge of €0.50. This fee is on all sales of goods/services occurring within a 12-month period from the date of an install, including app updates and reinstalls.

3. If a developer selects an IAP option, it may use Apple’s payment system or external payment system. A developer may use different payment systems for different EU countries, but must use the single payment system in the specific EU country.

If a developer uses Apple’s payment system, a developer must pay: 

• 17% (10%) of the standard commission.

• 3% of payment processing fee.

If a developer uses an external payment system, a developer must pay newly introduced fees:

• Initial acquisition fee - 2% (0% for small businesses). The same as in the PSP option. 

• Store services fee 5% / 10% / 13%. The same as in the PSP option.

Moreover, the CTF €0.50 is saved for each variant of the IAP option until the start of 2026 (recall, that the CTF to be paid for each first annual install per year over a one million threshold). In 2026, the CTF will be replaced with CTC completely, and it’s not clear yet what will be applied to this IAP option.

Slightly complicated, huh? There are also several special rules on specific products.

As a result of all these changes, the effective rates for each option in 2025 are the following:

Each developer and publisher should analyse their specific situation and evaluate what will bring more benefits while using Apple's different options. 

It can look beneficial to choose an IAP option and set the PSP for each EU country. But the CTF applied in the form of a fixed fee per install may distort that image.

Also remember that the CTF will be replaced with CTC, and it’s unclear how it will be done precisely.

Meaning and implications

It seems like Apple thinks that detailing the fee structures (i.e. turning into a riddle) may lead to an agreement with the regulator and compliance with the DMA.

The EU Commission has not responded to this update yet (this article was written on July 21st, 2025). But it has definitely started an analysis of it, and it will probably find violations.

As we see, the EU situation is slightly different from the US one, which we talked about earlier.

In its home jurisdiction, Apple was compelled to comply with a narrow and court-supervised injunction in Epic vs. Apple. In Europe, it shall comply with the law and, as a result, try to trick with it, adopting a layered fee system that nominally aligns with the law, but in practice preserves significant monopoly capabilities. 

At the same time, both regulatory paths reflect the same overarching purpose: to curb platform dominance and reduce their ability to exploit control over digital distribution.

Platforms charge rent from the people using it. In the Apple-EU case, it’s symbolic that this rent crystallised in the form of CTF/CTC, which Apple justifies as the “value Apple provides developers through ongoing investments in tools, technologies, and services that enable them to build and share innovative apps with users”.

Along with the new rules, Apple is trying to appeal the €500m fine imposed for the implementation of the first version of the new fees in 2024 - and that will be a separate and protracted dispute.